- Capital pool company Loon Energy (LNE.H) has cancelled its proposed amalgamating with Pacific West Canopy Holding
- The company first announced its intention to amalgamate with PacWest, an emerging cannabis company, in September 2018
- Loon Energy has not clarified why the two parties decided to cancel the amalgamation
- The company will remain a capital pool company until it successfully completes a qualifying transaction through acquisition or amalgamation
- Loon Energy (LNE.H) will resume trading at market open on October 8, 2020
Capital pool company Loon Energy (LNE.H) has cancelled its proposed amalgamating with Pacific West Canopy Holdings.
The company first announced its intention to amalgamate with PacWest over two years ago, in September of 2018. In the announcement, Loon Energy described PacWest as an emerging, vertically integrated cannabis company with facilities being constructed and planned in British Columbia and Alberta.
The amalgamation of the two companies would have counted as the qualifying transaction required to allow Loon Energy to gain regular TSXV listing.
The entity that would have resulted from Loon Energy and PacWest’s amalgamation would have continued under the name of PacWest. It also would have continued the business of PacWest, as a newly listed public company on the TSX Venture Exchange.
Loon Energy and PacWest reportedly agreed to cancel the proposed arrangement and all financial obligations they had to each other through the amalgamation agreement. The capital pool company has not clarified any reasons which could have caused the two parties to make this decision.
As a result of the cancellation, Loon Energy will remain in its current state as a capital pool company, or public shell company. The company must once again begin the search for a suitable business to conduct a qualifying transaction with.
This can be achieved through acquisition, amalgamation, or a reverse-takeover transaction.
Loon Energy has made a request to the TSX Venture Exchange, asking that the company be allowed to resume trading. The TSXV has approved this request, and has advised the company of a date for resumption of trading.
Loon Energy (LNE.H) will resume trading at market open on October 8, 2020.